TDS on Property Bought from an NRI (India): Calculator and Steps
Buying from an NRI? The TDS on each payment, the deadlines and the forms, step by step.
Non-resident seller Section 393(2) of the Income-tax Act, 2025 · section 195 before April 2026 · Sources
Each payment
| Paid on | Amount | TDS | To the seller | Deposit by | How |
|---|
Rules used and official sources
- Income-tax Act, 2025 — sections 2(101), 78, 393(2), 395, 397 and 398
- Finance Act, 2026 — sections 3(7), 3(16)–(17) and 87, First Schedule Part II
- Income-tax Rules, 2026 — rules 215 to 220
- Notification No. 121/2026 — Form No. 141 for property bought from a non-resident
- TRACES — TDS statements and certificates
Tax rules and rates change. This calculator follows the rules described on this page and may not cover every situation. Check the official source or a qualified tax professional before filing or invoicing.
About the TDS on Property Bought from an NRI (India): Calculator and Steps
When the seller of a flat, house or plot in India is a non-resident, the familiar 1% TDS does not apply. The buyer deducts tax at the rates for non-residents — 12.5% on a long-term gain (property held for more than 24 months) or 30% on a short-term one, plus a surcharge of 10% above ₹50 lakh and 15% above ₹1 crore, and 4% cess — under section 393(2) (Table Sl. No. 17) of the Income-tax Act, 2025, or section 195 of the 1961 Act for payments up to 31 March 2026.
Enter the price, the payments with their dates and the seller’s purchase date and cost. You get the TDS on each payment and what to pay the seller, the deadline to deposit it and the forms — for payments from 1 October 2026 a resident individual or HUF buyer needs no TAN and pays with the challan-cum-statement Form No. 141; others use a TAN, Form No. 144 and Form No. 131. Without a lower-deduction certificate you deduct on the whole price; the tool shows the seller’s estimated gain and what a certificate could change. Everything stays in your browser.
How to use it
- Say who is buying and whether the seller has a PAN — or, without one, the tax residency certificate and other details of rule 217.
- Enter the total price, the stamp duty value if you know it, the seller’s share and yours if there are co-owners, and the date of the sale deed.
- Enter when the seller bought the property and for how much (with improvements), and their selling expenses — these decide long or short term and the estimated gain.
- Add each payment you make to the seller with its date, including the advance. Tick the certificate if the seller has a lower-deduction certificate and enter its rate and amount.
- Read the TDS on each payment, the deposit date and the steps; copy the summary or download the schedule as CSV.
Examples
Long-term gain: 12.5% + 15% surcharge + 4% cess = 14.95%. TDS ₹2,24,250 and ₹20,18,250 (₹22,42,500 in all); the seller gets ₹1,27,57,500. An individual buyer pays each with Form No. 141 by 30 November and 30 December 2026.
The seller’s gain is about ₹83.5 lakh; a lower-deduction certificate could bring the TDS near ₹11.9 lakh.
The same TDS, but with a TAN: pay by 7 November and 7 December, file Form No. 144 and give the seller Form No. 131.
Short-term: 30% + 15% surcharge + 4% cess = 35.88% of each payment.
Common uses
- Buying a resale flat from an owner who lives abroad.
- Checking the TDS figure a broker or lawyer has given you.
- Planning the instalments and their deadlines, including the advance.
- An NRI seller seeing how much a lower-deduction certificate would release.
The rate
TDS on payments to non-residents is at the rates in force in Part II of the First Schedule to the Finance Act: for a non-resident individual, 12.5% on long-term capital gains and 30% on other income, which includes short-term gains on land and buildings. The surcharge depends on the amount paid or likely to be paid and subject to the deduction: 10% above ₹50 lakh, 15% above ₹1 crore; above ₹2 crore it stays at 15% on capital gains, and is 25% (37% above ₹5 crore in the old regime) on short-term gains taxed at normal rates. Health and Education Cess of 4% is added for non-residents. Without a valid PAN, the rate is at least 20% (section 397(2)(b)(i)), unless the seller gives the documents of rule 217.
Whole price or gain?
The law taxes only the seller’s gain, but a buyer cannot verify the seller’s cost, so without a certificate the safe course is to deduct on the whole amount paid. The seller can apply for a lower or nil deduction certificate (section 395; Form No. 128 — section 197 and Form 13 under the 1961 Act); with one, you deduct at the certified rate on the amount it covers. Otherwise the seller claims the excess as a refund in their return.
Paying and reporting it
- Resident individual or HUF buyer, payment from 1 October 2026: no TAN (section 397(1)(c)(iii)); pay with the challan-cum-statement Form No. 141, Schedule E, within 30 days from the end of the month, and give the seller Form No. 132 within 15 days after that (Income-tax (Fifth Amendment) Rules, 2026).
- Other buyers, and payments from April to September 2026: a TAN (Form No. 135), payment by the 7th of the next month (30 April for March), the quarterly statement Form No. 144 and the certificate Form No. 131.
- Payments up to 31 March 2026: section 195 with a TAN, challan ITNS 281, Form 27Q and Form 16A.
- Form No. 145 reports the payment to a non-resident (with Form No. 146 from a chartered accountant above ₹5 lakh without an order from the Assessing Officer).
Late deduction costs interest of 1% a month or part of a month, late payment 1.5% (section 398(3)).
Sources
- Income-tax Act, 2025 — sections 2(101), 78, 393(2), 395, 397 and 398
- Finance Act, 2026 — sections 3(7), 3(16)–(17) and 87, and the First Schedule, Part II
- Income-tax Rules, 2026 — rules 215 to 220
- Notification No. 121/2026 (Income-tax (Fifth Amendment) Rules, 2026) — Form No. 141 for property bought from a non-resident
- TRACES — TDS certificates and statements
- For payments up to 31 March 2026: the same rates in the First Schedule, Part II, of the Finance Act, 2025 (section 195 of the Income-tax Act, 1961)
Limitations
- For a non-resident individual seller. Foreign companies and other non-residents have other rates.
- Tax treaty rates are not applied: property gains are usually taxable in India under the treaties.
- The estimated gain uses the cost you enter, without indexation (not available to non-residents for property) and without the reinvestment exemptions.
- Payments from 1 April 2025 to 31 March 2027 are covered; earlier and later years may have other rates.
- Whether surcharge and cess are added on top of the 20% rate for a seller without a PAN is not settled; the tool uses 20%.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
What is the TDS rate when buying property from an NRI?
12.5% if the seller held it for more than 24 months, otherwise 30%, plus surcharge (10% above ₹50 lakh, 15% above ₹1 crore) and 4% cess — 13%, 14.3% or 14.95% for a long-term gain. Without a PAN or the rule 217 documents, at least 20%.
Do I need a TAN to buy from an NRI?
For payments from 1 October 2026, not if you are a resident individual or HUF: you pay with Form No. 141 under your PAN. Companies, firms and payments before that date need a TAN.
Is TDS on the full price or only on the gain?
On what is chargeable — the gain — but without a lower-deduction certificate or an order from the Assessing Officer you cannot know it, so buyers deduct on the whole amount. The seller can get a certificate under section 395 and reclaim any excess as a refund.
When must I deduct the TDS?
When you pay or credit each instalment, whichever is earlier — the advance and every later payment, not only at registration.
Does the ₹50 lakh limit apply?
No. The ₹50 lakh threshold belongs to the 1% TDS on buying from a resident. For a non-resident seller TDS applies to every payment, whatever the price.